What is a synonym for proration in real estate transactions?

In the context of real estate transactions, proration refers to the process of calculating and distributing costs or expenses proportionally among parties involved, typically based on time or usage. An adjustment is synonymous with proration because it involves altering figures to ensure that each party pays their fair share of expenses like property taxes, insurance, or utilities that might have been incurred over a specific timeframe.

An adjustment reflects the necessary recalibration of financial obligations so that they correspond accurately with the closing date or effective transfer of ownership. This ensures that the buyer and seller each pay only for the portion of the expenses that corresponds to their period of ownership.

In contrast, while calculation and distribution may relate to how figures are derived or shared, they lack the specific focus on the proportional nature that is intrinsic to proration. Reconciliation, on the other hand, generally refers to the process of resolving discrepancies or ensuring agreement between different sets of accounts or records, which does not specifically capture the essence of adjusting amounts based on a shared time frame or usage.